Earned Value Analysis in Project Management
The Importance of Earned Value Analysis
During a project, an earned value analysis gives the following numbers. EV = 523000; PV = 623000; AC = 643000. Which of the conclusions below is correct?
a. CV = 120000; SV = 100000
b. CV = 100000; SV = 120000
c. CV = -100000; SV = -120000
d. CV = -120000; SV = -100000
Which of the conclusions from the earned value analysis is correct? The question involves calculations of cost and schedule variances in project management. Using the provided earned value analysis values, the correct conclusion is 'd. CV = -120000; SV = -100000'. Explanation: The question is about project management and specifically, earned value analysis, which includes metrics like Earned Value (EV), Planned Value (PV), Actual Cost (AC), Cost Variance (CV), and Schedule Variance (SV). CV = EV - AC and SV = EV - PV. Using the given values: CV= 523000 - 643000 = -120000 and SV= 523000 - 623000 = -100000. Therefore, ‘d. CV = -120000; SV = -100000’ is the correct conclusion.